Luis Carranza Ugarte, Peru's Minister of Finance, on Lima's Economic Growth

Speaking at the Washington Conference on the Americas, Peru's Minister of Finance Luis Carranza discussed his recent impressive growth—noting that the country’s GDP grew by 9 percent last year—as well as the obstacles to consolidating such gains. Challenges facing Peru include high financial volatility, poverty, and social inequality. But, said Carranza, Peru can achieve success through structural reforms, improved commercial ports, and trade liberalization.

Carranza described the reforms proposed by his government to boost inclusive growth, including a flat tax rate, a requirement for the mining industry to invest directly in infrastructure, deregulation of labor, and improved teacher training as part of a broader educational reform efforts. “One of the biggest dangers affecting poor countries is the rising food prices,” said Carranza. He explained that Peru plans to boost agricultural production in a time of rising food inflation. The minister explained that poverty reduction serves as a primary goal of the reforms. “Only through poverty reduction will we be able to consolidate our democratic system.”

Responding to a question about Peru’s role as the 2008 APEC host, Carranza emphasized that it demonstrates the importance of openness. “This is our opportunity to press for having more free trade in the Pacific area.”

Prior to serving as finance minister, Carranza worked at the International Monetary Fund, Banco BBVA Continental del Peru, and BBVA Spain. He developed his professional career working as vice minister of finance and as a board member at Peru's Central Bank during the the administration of former President Alejandro Toledo.

For nearly four decades, the annual Washington Conference on the Americas has served as the top forum for government, industry, and policy leaders to engage in substantive analysis on timely themes affecting the Western Hemisphere.